The US Central bank – the Federal Reserve – promised the cash-strained European Central bank a practically unlimited amount of American taxpayer money for cheap, effectively bailing out the Euro.
Markets are rallying, traders are full of optimism and the Euro is up. The only loser is the dollar: the good old buck has weakened compared to other currencies. The reason? An announcement from the Fed, the European Central Bank, the Bank of Canada, the Bank of Japan, the Bank of England and Swiss National Bank reveals that they are going to provide troubled European banks with massive amounts of cash – cheaper and faster than ever before. Obviously, the lion’s share of assets will be provided by the US Federal Reserve. » | Thursday, December 01, 2011